If Private Investment Is Relatively Sensitive to Interest Rates, Then

question 15

Multiple Choice

If private investment is relatively sensitive to interest rates, then a fiscal expansion financed by government bond sales will:

• A)have no effect on output.
• B)raise output by a relatively small amount.
• C)raise output by a relatively large amount.
• D)have an ambiguous effect on output.

---

Definitions:

In-Service Training

Professional development and education for employees conducted during their tenure with an organization to enhance skills.

Child Care Center

A facility where children receive supervision and care, often engaging in play and educational activities while their parents are at work.

News Media

The various platforms and channels through which news and information are communicated to the public, including print, broadcast, and digital forms.

Federally Funded

Financially supported by the federal government, often relating to programs, projects, or institutions receiving governmental resources.